Facebook: A Potential Liability?

Posted by Risk Concepts Insurance Brokers on July 26, 2013

Facebook and other social media outlets have fueled the growing need for employment practices liability insurance. The increases in claims filed against employers warrant a thorough look at the financial risks involved with using social media to vet potential employees.

In general, using social media to prescreen employees can be a good practice. It’s a reasonable way to screen potential “bad news” for your company. But, there are laws that protect the personal privacy of job candidates, just as there are laws that protect your current employees. You may be familiar with laws that prohibit querying candidates on things such as race, religion, marital status and the like.

Asking for this information is illegal. And, if a candidate can somehow prove that you or your company used social media as a round-about way of getting that information, then your company is in trouble, unless you have coverage. Because of media attention given to legitimate discrimination cases and public fear toward invasion of privacy, many job candidates have researched these laws and understand the related implications of social media-based discoveries.

Having insurance against claims is essential to minimizing the interruptions to your business brought on by drawn out legal processes. Even if you win, the time and resources invested in clearing your company name will have a lasting impact on your business.

Risk Concepts Insurance Brokers specializes in employment practices liability coverage for business owners and corporations of the San Francisco Bay area. Contact us for information on coverage types specific to your business.